Formulas vs Backing out profits, etc when flipping.

[Anore' Allen]

I love this business and I'm always trying to get different perspectives especially when it comes to valuation techniques in a HOT market. 

Just out of curiosity when in a sellers market, are you guys and gals using 70-75% ARV method, or just backing out profits and costs (ARV minus repairs, fees, closing costs, etc)?

I find that both ways usually gives me a 'range' of what I should offer and I make the most intelligent (at least i'd like to think so) decision from there. 

Feel free to explain your method when determining MAO in a hot market.